Good afternoon everyone. Thank you very much for your attendance today. I look forward to sharing with you the information contained in the 2008 Report to the Missouri State University Campus. As more and more is expected and demanded of higher education, Missouri State has become a more ambitious and complex university. We are being successful in all aspects of our mission. The state, the region, the local community, and our students are depending on us, and we are delivering and offering wonderful opportunities to all of our constituents. Today, what I want to do in this report is review the twelve priorities that the Board of Governors established for the institution this past year, and then talk about the six themes that we will pursue for 2008–2009, again with the Board of Governors’ guidance.
We always begin with a review of where the University stands financially, and I think to summarize this briefly, we are in excellent financial shape. First, if you look at the operating fund balance—the one-time money available to the University—you’ll see that we now have $46 million in fund balance; that’s more than triple what we had back at the end of 2005. The insurance fund balance continues to increase as well. It is 68% higher than it was at the end of the ‘05 academic year, and that actually exceeds what the Board of Governors has recommended as a reserve in the insurance fund balance. Of course, I’d remind you that that’s been done without an increase in the cost of health care to employees. The operating central reserves are 2.3 times higher than they were; this is money that is available to the central administration on a recurring basis to address opportunities, emergencies, and contingencies. It has grown from $1.6 million to over $3.7 million. The endowment, despite having a rough period in the market in the last year, is up about 35% and right now is in the mid 50’s in terms of the corpus for the Missouri State University Foundation endowment. And then I’d notice for you that all of this has been done with only a marginal increase in the total number of semester credit hours being delivered at the institution. We’ve gone up about 4%, so this reflects good stewardship on all of our behalf in terms of the state appropriation and the tuition and fees paid to us by our students, as well as the external money earned by the faculty and staff and the private money provided to us by our foundation and our donors.
Now, the review of our priorities; we had seven projects this past year in terms of capital improvements for the institution. Let me talk very briefly about each of those. FREUP, first of all, is the renovation of academic buildings on the three campuses. Siceluff Hall has now been vacated, as you know, and its renovation is under way; I’m sure you can hear it on a daily basis. We are scheduled to be back in Siceluff with the academic programs destined for that building next Fall. The architects have been selected and the design process is in various stages of progress for Hass-Hoover Hall and Gohn-Wood House on our West Plains Campus, and for Hammons Student Center here on the Springfield campus. Of course, Hammons Student Center is ultimately where the contents of the McDonald Arena will go. JVIC, both Phase I and Phase II, has now been completed— Phase II being the second building built to the northeast of the tower. JQH Arena, as we announced last week, has come in with essentially all the contracts now awarded; [we] ended up being a little more than $1 million under budget. We’ll have the first public event for students, their families, and the campus on November 1st. Throughout the rest of November, there will be other open houses and tours of the arena, [with] the opening basketball game for the men on the 22nd and for the women on the 23rd. There may still be an announcement about a concert in that time frame. For the University Recreation Center, the architect has been selected and the funding has been established with the student referendum on a dedicated fee. We will hopefully resend this month a request for proposals for privatized student housing, and we anticipate that would be to the west side of the campus although there might be some possibility on the north side of campus or just to the north of campus. Downtown development, I’ll have a little more to say about this a bit later. We now have classes being offered in Brick City from our Art and Design Department, the first 20,000 square feet under the University’s delivery of academic programs. The Brick City development will continue as a private development, and the University will continue to look at the potential for it with respect to the remainder of the Art and Design Department. For IDEA Commons, we have concluded the negotiations and the agreement to purchase five properties downtown for research space, economic development space, and for academic development programs (I’ll have a little more to say about that later). The renovation is in progress in Kemper Hall for our engineering program. The first cohort of students are enrolled, and I will talk about those students a bit later as well.
The second goal is to improve retention and graduation rates. For the Board of Governors meeting in October, we will have the newest figures on this. This chart shows that we’ve held steady with student retention with respect for first-year, first-time freshman. We haven’t budged [on] this one very much. It’s been right in that 73–74% category from the end of the first year to the beginning of the second year retention rates. The six-year graduation rates [graduate student graduation rate] has made very nice progress with its all-time high mark of 55% for last year; I’m hoping that might nudge up a bit more this year. This now puts us ahead of the average four-year institution in the nation in terms of six-year graduation rates. We do have a number of student success initiatives that were launched this past year and that will be continued this year. Reorganization with Student Affairs and the Provost’s Office to emphasize student development and public affairs. A focus on the unique Missouri State experience in how we engage students is a key ingredient to retention. What we know from national data is that engagement is very, very important to improving your retention rates, and Belinda and Earle are looking at ways to coordinate our activities there to improve that. [We’re] beginning to discuss ways that we put more meat on the bones for public affairs, and three areas are emerging that we’re having discussions about in terms of curriculum and opportunities on and off campus for students. Places we can be special with respect to the education we deliver at Missouri State [include]: ethical leadership, community engagement (where we’ve always been a leader and we continue to be so), and the cultural competence of our students—can they work anywhere in the world and be comfortable that they’ll be able to be successful in those communities? We continue to look at the curriculum and instruction, particularly with gateway courses at Missouri State like on any other campus I know, sometimes are bottlenecks for students. And then Belinda is moving forward with the further maturation of Faculty Center for Teaching and Learning.
We said we would expand distant learning courses and that pertains to both new academic programs as well as the opportunity to complete programs. This presentation will be on the web and in some cases I’m just going to make passing references to the content and let you parooze it more at your leisure and as your interest dictates on the web. But with respect to our distance learning offerings, we have an update in every category that we talked about. Here are some other online programs that have expanded their distance learning opportunities, as well as some general education courses that are being developed.
We said we would improve our research infrastructure and environment, and one way to trace that is: what are the results? This past year, the Missouri State University faculty and staff set a record, once again, for externally supported projects—the grants and contracts delivered to this University to support the research and scholarship that our faculty are engaged in. For the first time going over $22 million, 22.4, and you’ll see a nice increase now three years in a row in the number of proposals that have been submitted for external grants and contracts. Futures is another initiative. Remember we make about $700,000 a year available for this, administered from the Provost’s Office. In 06-07, there were 11 grants, about a million dollars. The second year, 14 grants, again about a million dollars. And Belinda supplemented that with some money from the Provost’s Office for some proposals that were bedded here on campus. With environment and water resources, the most numerous in terms of funded activities. For this year there was not an additional RFP, but there will be some targeted allocations of funds to bolster some areas where we think we have some special, unique, good opportunities. Water policy and planning continuing that, which is of immense importance to this area of Missouri. You have some communities in Southwest Missouri that have dwindling ground water supplies. Soon we will be reaching crisis of proportions so we know that’s an obligation for us to continue. [It is] a great in Ozarks studies and then particularly in the educational aspects of health and human services. Belinda will look for some good opportunities for some targeted assistance.
We said we would establish some new degree programs that were important to us. Certainly the one that has received the most attention is the new cooperative program with Missouri University of Science & Technology. Thirty-eight students were admitted this fall into the Civil and Electrical Engineering curriculum. The director has been hired. One of the two faculty members at Missouri State has been hired. The equipment is ready; we got the second year of funding from the state, the one-time money, to make that possible. The second faculty member, Tammy Yonke, indicates she will be hired this year. We launched the new B.S. in Information and Technology Service Management with the help of IBM, the first undergraduate program in its kind in the United States. Preparing to Care, which is the expansion of the health care programs at all public universities and colleges in Missouri. We will go after that again this year in terms of the state appropriation; it will be called Caring for Missourians this time. Same scope as last time. The Coordinating Board for Higher Education has already approved this as a budget request for the state. This is the vehicle by which we would expand our existing health care programs and seek to establish the Pharm. D. program here in Springfield with UMKC. Our first set of graduates from the Physical Therapy Doctorate program graduated this year and 28 students admitted this fall, so a nice start for it. And then a really robust enrollment in the B.S. in Entrepreneurship, over 80 Missouri State students.
We said we would continue to work toward the launching of a new comprehensive campaign and increase our national presence. I don’t have it on the slide here, but we made 12 national presentations to alumni groups across the country. We have hired a campaign consultant. We are in the process of forming the steering committee; we’ll probably have that as an announcement early next year. The feasibility study for our campaign has been completed and we invested about $200,000 in this year’s budget to gear up for the capital campaign in terms of sponsoring activities, publications, and additional staff.
This past year, a new record for private giving to Missouri State went way past the prior record of about $12 million: over $14 million ($11.9 [million] was the prior record). Also had a record number of alumni making gifts, more than 8,000 in a year, which that’s clearly a counter to the trend across the country in which the number of gifts and number of universities has seen those decline. We had the first private gift to the Jordan Valley Innovation Center, we had the lead gift to establish the Operation Promise Scholarship (I’ll mention that again a bit later), and we reached our $5 million fund-raising goal for JQH Arena. Here is a designation of the gifts by their designated areas, because sometimes I hear the question, “Will the arena take away from gifts in other areas?” As you can see, that didn’t happen. In fact, we were up in academic affairs on this campus. We were up on university-wide giving on this campus. We were up at the West Plains campus in terms of giving. The only area where you saw a little slide was in Athletics, and then the hefty increase in the arena as we reach the $5 million mark. So comparing this year to the year before, a $3 million increase and the increase associated with the arena did not come at the expense of academic programs, facilities, or other targets for private support.
We said we’d improve our campus safety and security. We did allocate in this budget money for expanding radio communications center. $150,000 to begin to re-key and lock important campus classrooms and buildings. $250,000 for a lead tracking system to manage our reports and documentation of incidents on campus. We have had small tests of the Missouri State Alert System. There will be a much larger test upcoming, but we think that system will be fully functional, ready to go this semester, and we’re continuing to provide emergency response training.
We said we would finish the public score card, and in October we will present the update to the Board of Governors at that meeting of the public scorecard. We now have 17 measures completed, and eight more to go. Of those eight, I believe the new software that was purchased in the Provost’s Office for charting creative and research activity by faculty and students will allow us to get most of these in-hand and completed this year.
We continue to provide, I think, outstanding financial aid and tuition policies. This shows the number of students involved in our CAP-IT program. We won’t be doing the two-year fixed plan this year for students, because of the Senate and House (approved by the Governor) legislation that fixes tuition at no more than the cost of the CPI inflation index. Missouri State Promise, as you know, is targeted to financially needy students at the poverty level. We awarded that to 33 students this past year, and Access Missouri, which is the expanded state program for financial aid again and for need-based financial aid, a significant increase here to over 3,000 students; the year before, about 500–600 students received this money. Over 4 million in state aid for our most financially needy students. We are expanding the criteria for the Missouri State Promise Scholarship to 150% of the federal poverty level. We will continue to be a leader in Missouri in terms of institutionally based financial aid for our neediest students. Operation Promise was funded by a private gift that has now endowed scholarships for veterans who have been injured since 9/11 in combat or dependents of veterans injured since 9/11. And then we introduced a number of new scholarships to assist in students completing their degrees—students who are close but not quite finished—or to encourage students to come back and take a stab at graduate education in a period where we know that’s going to be important. Last figures, I saw 38 of these scholarships were awarded. There were also some freshman transition grants, and they were used effectively to convert the decision of some incoming students from another institution, whatever it might be, to Missouri State. Why is financial aid for need-based scholarships so important? I’ll show you this graph, which shows that students who come from families in the lowest quartile of income are seven times less likely to earn a baccalaureate degree in the United States, and you can see that that gap has expanded dramatically across the past 35 years. That’s why it’s an obligation for us to make sure that financial need is not a reason that highly capable students don’t go to college or complete college. And it really is astounding to me, and very disappointing, that that gap has grown to a factor of seven now between those students in the top quartile income families and the bottom. Our West Plains campus has had a good year, and we will continue with progress there. Tomorrow, I’ll make a presentation with Chancellor Bennett at West Plains that will focus on the West Plains experience just as today’s presentation focuses on Springfield. But I would want you to know that they’ve had double-digit enrollment increases and will have another hefty enrollment increase this year. A number of new initiatives reaching out to businesses and for new programs for students. Chancellor Bennett has done a wonderful job of strengthening connections to local high schools through a mentors program and through a core of opportunity program very much like the Missouri State Promise is on the Springfield campus. The scores on the Community College Learning Assessment and the Assessment of Academic Collegiate Proficiency continue to increase for West Plains, and West Plains has now begun to look at cultural competence as an important quality for their students and have study abroad opportunities both in Asia and Europe.
We said we would follow through on a number of desperate initiatives, all of which have been identified in the area as important to us. Here are seven of those. I’ve already talked about the Futures, and let me mention a little about each one of the other ones. Thought you’d be interested in the tenure and promotion results for the past year. Forty-two applications for promotion and tenure; 31 of those were approved, forwarded, and resulted in advancement. So a success rate of 74%, which I think is pretty standard across rigorous institutions of higher education in the country. The ERP is on schedule. The financial module has gone live. Student admissions will be next month. Basically, at this point, all the other modules appear to be on-time, and we are looking forward to having all the ERP in place by next summer. Work life, we have completed a survey and focus group. We did, as an early result of that, introduce a new summer vacation policy for staff, as you know, giving you four extra days in the summer. I anticipate a report, a draft report at least, from the work life committee later this week. And I’ll have a couple of things to say later on about some new initiatives in work life. The compensation system for the staff now is in place. One of the significant things we did as we brought that into place was be sure that all current staff who had salaries below the minimum levels that had been established for the new pay grades were brought up at least to those minimum levels, and so we allocated a special amount of money above the standard raise pool to do that. In the Social Work program, we’ve hired a new director and five new additional faculty have been hired. We have moved to a more selective admissions so the total enrollment in the Social Work program is down a little bit in a deliberate attempt to make sure we’re admitting very high-quality students. We were re-accredited by the Council on Social Work Education, and we have, in order to give the new director and faculty a little more time to get their feet on the ground, requested a postponement of the onsite visit until 2011. Have we heard, Belinda, as to whether that’s been granted? It has been granted, so we’ll have that site visit in 2011. I thank the people associated with the efforts here. I think we have made some substantial improvements and changes, gratified that that’s been ratified to some extent by external reviews.
Promote ethnic diversity: this was an important area for us in terms of students, faculty, and staff. We will continue the President’s Commission on Diversity, a group that will set strategies and goals for the institution. It will have both on-campus and external members, and I’m pleased that Leslie Anderson has agreed to be the Chair of the President’s Commission on Diversity this year. There then will be a Diversity Strategy Team that Belinda will take the lead with and will look at the cultivation of specialists and advocates for diversity in all aspects of that term throughout the institution. This is going to be too much data for you to see easily on the screen, but I refer you to the report that will be on the web page or to the scorecard, and what you will see is that we have made very nice, steady progress with respect to the diversity of the students enrolling at Missouri State University. You’ll also see that we have made no progress with respect to the number and percentage of minority faculty. That has basically been flat and we have not made progress with respect to the number and percentage of minority staff. We still have work to do here to make this institution look more like the world looks and that, as you will see with some statistics later on, will become an increasing issue for the state of Missouri.
Finally, we were urged by the Board to maintain a successful intercollegiate athletics program. Those criteria defining success, I think I’ve shared with you on multiple occasions, being the ability to compete. I summarized here, there were two conference championships this past year. There were three second place championships and one top-half finish. Our student athletes and our athletic program will comply with our rules and regulations. We had an issue last year that was well publicized with some arrests. We commissioned a special panel, and that panel made recommendations about uniform policies for how to handle these kinds of fortunately rare incidents at Missouri State. Those have been accepted and are in place now and, in fact, the University is being contacted by a number of institutions to ask about these policies, I think with respect to an interest perhaps in emulating those. All of our athletic teams have met the minimum academic progress rates set at 925 by the NCAA. There was an adjustment in baseball, and after that adjustment, approved by NCAA, I’m pleased to report that all 16 intercollegiate athletic sports at Missouri State meet and exceed at this point the 925 APR. And then we said we’d continue to work towards the integration of athletics into the campus—the university community culture. The football conference has been rebranded; that’s probably not of much interest locally, but it will probably be of interest to the recruiting of student athletes because of the brand quality associated with the Missouri Valley name. The Sports Information Director now reports to University Relations; that’s a change from the prior reporting structure, which was in Athletics. And the Achievement Center reporting structure has now been confirmed and is now in the Provost’s Office. Finally, I want you to see something about revenue with athletics. It’s the first time that you’ve seen this because this is NCAA data. This shows the percentage of revenue generated from outside sources for intercollegiate athletic program. It’s a percentage of the total athletic revenue, and what you will see is a comparison to the Missouri Valley Conference schools in orange and to our benchmark institutions in green. You will see that at Missouri State, about 60% of the athletic revenues—what we spend on our program—is generated from outside—way, way ahead of the Missouri Valley Conference and our benchmark institutions. This is a 20% gap, and you can see that we’re maintaining it. What do we spend per capitation with respect to student athletes? Again, this is a comparison of Missouri State University, what we spend per student athlete, in ’07: $34,000. On average, the Missouri Valley Conference: $42,000. Our benchmarks: $47,500. This is all salaries, facilities, and scholarships. And you can see that the increase in those two benchmark comparisons—the Missouri Valley and our benchmark peers—are dramatically greater from 06–07 at Missouri State University. So I think when you have this opportunity to look at this comparatively, data that we didn’t generate but generated by the NCAA, we can look and say that the sports programs here at Missouri State, for this kind of institution, are actually doing quite well with respect to their external support.
Some other highlights and achievements during this past year [include] a wonderful reaccreditation report for the College of Business Administration, and a number of best practices cited. For our College of Business Administration, my congratulations to Dean Bottin and all of his faculty and staff for that. Terrific faculty recognitions at the national level: Dennis Hickey with a Fulbright, Richard Gebken being named an outstanding junior faculty member from the National Association of Home Builders, and Mark Richter who was selected as the 2007 Carnegie Endowment Foundation for the Advancement of Teaching Professor of the Year. And Mark made, as I recall, a trip to the White House for that. The Ad Team won the National Championship, and the Debate Team finished in the final four. The Logistics Team, for the first time in history, a national ranking. The Ozarks Writing Project is one of only two hundred projects supported by the National Writing Project here at Missouri State University. You know, of course, the Pride Band being in the Tournament of Roses Parade. David Vineyard, the first Rhodes Scholar Finalist in the history of Missouri State University. I think we had a great Public Affairs Conference; I thank everybody who is associated with that, and we look forward to another really good one this next spring on sustainability. A regional championship for the SIFE Team, and also for the first time in history, Equity Status earned by Tent Theatre.
Our six themes for this next year. These are a result of a lengthy discussion both at a retreat and then over the course of numerous communications with the Board of Governors and then at a retreat by administrative council. These all address the five goals that Missouri State University established back in 2006, with the latest long-range plan for the institution. And here are the six themes; I’ll go through each of these in terms of some of the things we are emphasizing and why. We will foster our student’s successes, we will enrich our public affairs mission, we will continue to transform our campuses, strengthen our competitiveness, engage our community, and advance our understanding. And in that context, let me remind you the status of this institution at this point. We continue to be the second largest university in the state. For the first time, the enrollment of this institution will go above 21,500 this week. There will be an announcement later this week about another record year of enrollment at Missouri State; that will apply to almost every category of full-time student, we believe: West Plains, Springfield, undergraduates, and graduates. A great reflection of students and families confidence in this University. Springfield now has a metro area population of 420,000. We continue to have the 4th largest graduate enrollment in the state at 3,000. We’ve now surpassed the 100,000 mark in terms of degrees awarded. And this fall, the university will set another record with respect to the average ACT score of its entering class: 24.2—way ahead of the national average, substantially ahead of the average in Missouri. And I’ll recall again for you the private fund-raising record: a 20% increase over the high-water mark before, the increase in record of alumni donating gifts, your record in terms of externally sponsored programs, and a six-year graduation rate that exceeds the national average for public universities. Those are really very fine accomplishments by the University, and I congratulate you for it.
How to foster our students’ success; I will go through a number of things very quickly here in terms of specific tactics we will use. We will strengthen our recruitment and enrollment management. There will be a dwindling pool of high school seniors in Missouri. We will need to work harder to attract them here. We will need to work harder to attract transfer students here. We are doing a great job with transfer students. There will be another record this year in terms of the number of transfer students coming to Missouri State. We purchased a private resource Goal Quest to help with communicating with perspective students. We will make that more specific to Missouri State in the second year. We’ve had a shakedown cruise with that for the first year, and we are now I think ready to progress to a higher level of sophistication. We’ll continue to take the lead in financial aid, both need and merit-based. We will continue to work hard for the further cultivation of the Faculty Center for Teaching and Learning. We are going to design a curriculum with the input of the faculty that makes the public affairs mission be as specific to this institution and as alive as we possibly can do. We do need to work more on diversifying this campus, particularly, and this is from the Board of Governors, with respect to the ethnic diversity of this institution. And you’ll see in a while the demographics of Missouri will argue for this as an important goal. Consistent with the fact that the state will expect new performance indicators to be put in place, we will be moving towards the use of licensure pass rates, career success, and acceptance rates into graduate schools as measures of institutional outcome. We do need to find a way to include personal financial responsibility as a core competence for our graduates. A number of different ways we can do this. This isn’t a matter of mandating a course; it’s a matter of finding a way to ensure that our graduates are financially more literate than many of them will tell us they are right now. We do need to work on a comprehensive marketing plan for our enrollment and look at some segmented markets, in particular, for those recruiting efforts.
Why does enrollment matter to this institution? Why not just stay where we are? I’m going to give you three reasons why enrollment matters a great deal to you; they have nothing to do with the general, what I assume everyone would endorse, positive value of the public benefits of higher education. I’m going to speak about these from a very specific institutionally important perspective. The budget, the new funding formula for the coordinating board for higher education, and the long-time capacity for Missouri to support higher education. And this will be something that we’ll continue to discuss at the town meeting on Friday. Let me go through why enrollment here matters a lot, and why we need everybody’s help to continue to make the steady progress we’ve had on robust enrollment. First is the budget. This is a breakdown of the operating budget in Springfield from two sources—what the state gives us and what our students pay us to come here in tuition and fees. Fifty-six percent of this University’s budget is now supported by tuition and fees. The percentage between the state appropriation and tuition and fees has been growing in the direction of more and more emphasis on tuition and fees. I also put down: what would a 1% reduction cost this institution in tuition or in the state appropriation? And think how upset we become, how discouraged we become, when we hear about any kind of reduction in the state appropriation justifiably. But you can see here that a 1% reduction in tuition and fees actually is considerably greater than that one percent reduction in the state appropriation with respect to the operating budget of the Springfield campus, and we frankly are more dependent on tuition and fees than the West Plains campus is from a percentage point-of-view. So the operation of this institution is approaching 60% based on tuition.
In 2011, higher education will be funded with a new funding formula that’s had the support of the institutions, and at the last meeting of the Coordinating Board for Higher Education, it was approved and is being sent to the governor. Let me give you the overall framework and then the mechanics of it. There will be three elements to funding for the state appropriation to higher education: core mission funding at the base, strategic initiatives in the middle of the triangle, and then performance funding, where the state, on an overall basis and each institution specifically, will receive additional funds for meeting performance goals. This becomes effective in fiscal year 2011. So we have one more year with the current approach, which basically is a percentage increase for institutions. The appropriation that the state gives above the CPI—the consumer price index—any appropriation above that amount will be used to close a funding gap that currently exists between what the state of Missouri provides for a full-time student in higher education in Missouri and what the nation provides. We’re 47th, so there’s a big gap to close. So anything above CPI will be done to close the funding gap. It will not be done across the board. The gap funds will be distributed on basis of what’s called an educational funding model and that’s based on a weighted FTE: How many full-time students does your institution have weighted by two factors? The two factors are five discipline clusters based on the cost of delivering courses in those disciplines, and then five student levels from doctoral down to introductory level. This is based on national data that shows it costs more to educate a Ph.D. student in physics than it does to educate an introductory student in history. And so each institution will have a weighted FTE derived for it and the multiplier that is used with that FTE will be a three-year rolling average. You’ll take that average—that weighted FTE—you’ll multiply that times a standard funding rate—a dollar figure—and that will be the appropriation increase you get above CPI. If the funding increase from the state is not above CPI, we’ll just get CPI or we’ll get a pro-rated share of CPI. In addition, there will be a special funding adjustment, assuming funds are available for five institutions in the state of Missouri as this new formula is brought into place. Missouri Southern and Missouri Western will get some supplemental funds associated with their mission change from a four-year to a two-year, excuse me, the other way around, from a two-year to a four-year. The University of Missouri, Missouri State University, and Southeast Missouri State University will receive an adjustment for the fact that we were the three institutions that experienced dramatic enrollment growth during this decade, and that was not adequately funded. So the new funding formula for anything that closes a gap between us and other institutions in Missouri, or between us any student in Missouri and a student outside of Missouri, will be determined on the basis of the weighted FTE students we have here. Enrollment will matter at this institution just like every other public institution in Missouri, probably like no other time before.
And then finally, how do we guarantee that there is adequate capacity in the state—adequate public revenue to support higher education? We show you some figures that should cause something between alarm and concern for you. And hopefully you take away from it the message that the only way that this is going to happen is to increase the number of college graduates in the state of Missouri. This shows a comparison of the United States, which is the far set of four bars on the right, with seven other countries, in terms of the percentage of adults aged 25–64 who have a college degree. The yellow is the oldest cohort, the blue the next, the green a middle cohort of 35–44. First thing that you’ll notice is that in comparison to those other countries, for the most part, the United States is a leader or near the top with respect to the yellow, the blue, and the green bars. Our older folks in the population have a higher level of post-secondary attainment compared to these other countries. Look at the red bar. That’s the percentage of adults between the age of 25–34 who have a college degree. We’re last in this group. Every other country has moved beyond us. The other thing that you’ll see is that we’re the only country where the red bar is actually less than bars representing older cohorts; the only one. This is a significant problem for the U.S., with respect to, what I’ll show you in a minute, correlation between post-secondary attainment and income, and of course the obvious correlation between income and public revenue. Well, let’s bring it a little more locally. Where does Missouri stand in terms of the attainment of college for adults? The gold bar is the U.S. average at 37.4; Missouri ranks 38th at 33.2% of adults with a college degree. That gap is probably between 100 and 150,000 people in Missouri who we would have to increase the rate of educating to get to the national average. It’s not a good picture for this state. Here is a map which generates the distribution of people 25 and over with a college degree. The darker the shades, the higher the percentage of people with a college degree. The lighter the shade, the lower the percentage of people with a college degree. Look how light the southern half of Missouri is. In fact, look around the rest of the country and see how many other areas you see that are much lighter than the southern half of Missouri. There’s the income map. The darker the shade, the more the average family income. The lighter, the lower the family income. You can take this map—and I welcome you to do it when you go back and have time—and impose that map before it on it and you’ll see what a remarkable correlation there is. Here’s Missouri. Again, you’ll see there are only three really dark areas at all with respect to the saturation of people with a college degree: around St. Louis, around Columbia, and around Kansas City. This shows the percent of the population involved with starting up a new business or managing a new business. There’s one age group that stands out here; it’s the 25–34 year-old group. In fact, 18–24 year olds are actually third in this cohort. So our youngest adults are the most likely to be involved in the entrepreneurial activity associated with generating new businesses, new startups, new revenue. So it’s particularly important to look at the distribution of people 25–34 with a college degree. Here’s your map of the U.S. Once again, you can see Missouri probably even gets a little lighter here in comparison to the map before. There’s Missouri, and now focusing in on it, you only see three areas with very much of a darker shade: St. Louis, Columbia, and Kansas City. The southern half of Missouri, pretty light with respect to the distribution of people 25–34 years old with a college degree. Well are we catching up? This shows the national figures for increases in FTE students attending public higher education in every state. You can see the U.S. average there is about 10.6%. Missouri ranks 35th at about 6%. The gap is getting wider for us, not smaller. So I hope that’s grounds—and will bring these back for discussion Friday—for some really interesting discussion on why enrollment matters for our vitality and for our future at this institution.
Enriching the public affairs mission; we hope to have good discussions this year about maturing this mission with possible emphasis on areas like ethical leadership for our students, for cultural competence, and for the most meaningful, intellectually sophisticated forms of community engagement. I think we do need to market our public affairs mission better, but to market it better we’ve got to be sure that we are really offering something special, something unique, something that no other institution duplicates. And that’s going to be important for us as we review the capstone courses, how we deliver IDS 110, how we approach helping our students become more responsible with respect to the management of their personal financial affairs. Its occurring in a national context, and I invite you to go to any of these websites to see how similar what we are talking about with these particular points of emphasis, how similar they are to initiatives across the country, both at a disciplinary level with the American Psychological Association, but perhaps more germane to a campus-wide discussion, the national organizations that are looking at how to educate students for the civic responsibilities of the twenty-first century. I will make some new support available for student engagement, so today I am announcing that the President’s Office will provide at least $150,000 this year to promote some new student engagement activities. We’ll provide some money to fund more graduate students going to conferences to make presentations. We will provide some money to increase on-campus employment and internships here at Missouri State. We will provide some funding for greater student involvement, our current students in recruiting newer students, and we are thinking of the best way to style an RFP to expand some of our organized student groups and activities that can show a record of unique success. This is all towards the goal of improving recruitment, retention, and engagement as we measure that regularly with the national instrument the National Survey of Student Engagement. We will have a town meeting this Friday on the nature and mission of the institution as it derives from funding implications, regional needs, state priorities, and some of the unique opportunities and demands associated with Missouri State, particularly in graduate education. Then on November 7th, a town hall meeting on public affairs, and on the 21st, on student success and the components that contribute to student success, as well as the best ways to measure those successes.
Third theme for this year is to transform our campuses; this continues our work on a number of important capital projects. We will continue on the FREUP projects, and you’ll see that progress obviously unfold as we make good progress on sites. JQH open on November 1st. We are going to work hard to try to find adequate funding for a new science facility. It has been recommended by the Coordinating Board for Higher Education as a capital investment for Missouri State University to the legislature. And then we’ve talked about the privatized housing, the University Rec Center, continuing to design it, and maintaining our campus security. The downtown campus, I want to say a little bit more about this, and you’ve read about the IDEA Commons. The thought for the IDEA Commons as a theme for our downtown expansion is to look for areas where business development and the commercialization of research from this university would receive priority. We think we have great capacity that we can continue to exploit with partnerships involving innovation entrepreneurs and well-established enterprises. And the focus, as I think you probably have seen in other articles, will be on Innovation, Design, Entrepreneurship, and the Arts. The first two facilities in the IDEA Commons: The Roy Blunt Jordan Valley Innovations Center, and I am going to show you a possible expansion of it in a minute, and then the initial occupancy of Brick City by the Art and Design Department. I did want to review for you what JVIC has done in the six years since the city made a $100,000 investment and you paid a dollar. $22 Million have been brought in facility construction and renovation to the MFA facility, $6 million has been earned through grants and contracts for equipment and machinery in that facility, $60 million has been earned for research activities by Missouri State University, its corporate partners, and JVIC, and you currently have a little bit more than 60 jobs there, many of them Missouri State graduates with an average of $60,000 a year, almost double what the average salary in Missouri is. So the net impact—and this does not include any multipliers; this is just the direct funding coming to JVIC—is now above $90 million, which is really a very good return on a $101,000.
Looking to the future, this shows Building Four at the Jordan Valley Innovation Center (you see it in the lower right hand corner on the picture on the left), and then a photo that captures it in all of its ugliness on the right. That’s a very unsightly facility. This gives you an idea of what an expansion would look like. We believe that the demand with the corporate partners there, or additional ones would be, could attract along with some targeted funding would make this particular expansion be a very likely development for the future. To summarize our proposal to the city, we offer them $450,000 to purchase those five properties. Two of those properties give us really good potential for building new structures either by the university, solely, or in partnership with other entities. And what we agreed was that these properties would be used to advance the goals of JVIC and be consistent with the IDEA Commons’ priorities: additional space for the corporate affiliates; spinoff manufacturing for the products that are developed there; entrepreneurial support; perhaps relocating the small development center there; additional art and design facilities; additional scientific labs and research space; and additional academic departments, whose mission would make it sensible to be located in that area.
Strengthen our competitiveness; a number of things here that we want to make progress on this year: continuing to promote a good work-life balance with our faculty and staff, the higher and retaining of excellent faculty and staff, our restructuring our enrollment management to resize recruiting and effective marketing, make progress on our salary goals (I have some data on that in a minute), we believe we will be in a position to launch a new capital campaign, we will get the ERP fully implemented, [and] we will continue to operate a competitive successful intercollegiate athletics program.
Then today I also want to announce a plan that I would like to take forward to the Board of Governors at the October meeting, which would increase your tuition benefit as a faculty or staff member at Missouri State from twelve to fifteen hours, effective in the next academic year. And, for the first time, allow you to use the dollar value of up to six hours for tuition at Greenwood for your children. We also would like to begin to involve alumni stars back on campus a bit more. So you can anticipate more information about an Alumni Fellows Program where we would bring back highly successful alumni to your colleges. They would be people you would identify as folks your students would like to hear from, so that they can visualize the success that a college education at Missouri State has helped begin, and in many ways, develop at a very high level for our alumni. A little bit of information about the salary increases of the past three years. Here are the benchmark institutions, and we have shown each of the three years in terms of where Missouri State ranks. In 2007 and ’08, we were the second highest. In 2008 and ’09, we were the third highest. This puts us in the top half across these three years in terms of accumulative salary increase for faculty and staff. These are actually underestimated a bit for Missouri State, but because we couldn’t identify some the peculiar things that have gone on at other institutions, we basically used the pools. That first year, we were constrained a bit by a state increase of only 2%, but you can see in each of the next two years—in 07–08 and 08–09—we actually exceeded, as a salary increase, the state appropriate increase that Missouri State received. So were making some progress here; still obviously a ways to go.
Budget recommendations for higher education and for Missouri State. This is the first time for me to present this to you; it was the result of a vote last week by the Coordinating Board. A 7.4% increase state wide; that would be 6.5 million for Missouri State. Caring for Missourians at about 40 million; that would be 2.2 for Missouri State. $500,000 in a pilot program for performance funding deferred maintenance at about 87 million, and that would be 6 million for Missouri State. And every institution got its first capital project, recommended 523 million one-time money, and 54 million for Missouri State. This is not all going to happen, but we do think that it is a very good recommendation by CBHE that acknowledges the important needs that we have and the catch-up that we have to do for public higher education in Missouri.
Engaging our communities; we need to get out and keep working on these K-12 partnerships where we have done great work for over a100 years. We have to sustain that. JVIC and the IDEA Commons gives us a wonderful opportunity locally. We will conduct a second year of the Community Caravan, which is a regional emphasis. I would like us to take better advantage of our summer academies and our West Plains summer camps as a way to recruit more students to Missouri State. We will conduct the monthly forms for an on-campus emphasis on the communities, and we will continually construct strong contact with the alumni and particular attention to Kansas City and St. Louis, our third and second larger sources of students respectively. One group—and I said I would mention this very quickly—one group that we are really going to have to concentrate on our minority students. This shows the change over the next twenty years by demographic groups in the United States. On your left hand side 18–20 year olds, and on your right hand side 25–40 year olds. You can see that every minority group—African American, Hispanic and other—increase in this period of time. White Americans decrease during this period of time. That’s even stronger on the national level for your older age groups. But what about for Missouri? This shows Missouri that the decline in 18–24 year olds are college going age predominantly. You have a 10% decline in white students in Missouri and a significant increase in every other minority group in Missouri. You see that for every age group as you go through this projected change for the Missouri population.
Finally, advancing our understanding: we have got to continue to be a university whose faculty and staff are involved in important research, a source of original discovers, at the same time we maintain the great reputation we have had as a teaching university. So we look for the right time with the solid process for investing in the futures. We’ll continue to work on making sure we have facilities and equipment—the research infrastructure necessary for you to be successful—and we will work hard to get funding for Caring for Missourians and expansion of our health programs. The new economy index is a measure of every state’s ability to compete in the twenty-first century with the demands of a changing economy on a world-wide basis. It’s done by the Kauffman Foundation in Kansas City. They look at 26 indicators of economic progress in five categories: the educational level of your workforce, are you exporting manufacturing and services, how many startups and patents the economic dynamism of your state, how many of your state’s population is online (they call that the digital transformation), and then how many scientist and engineers are in the work force (and they call that technological innovation); in parentheses, one measure out of several out of each of the five categories. How does Missouri do on the new economy index? Not too well. Twenty-fifth in knowledge jobs, 38th in globalization, 37th in economic dynamism—that’s that startup area, and it’s no secret as to why that’s a problem when you look at the rate of people 25–34 in this state with a college degree—digital transformation 40th, and technological innovation—where do we rank in scientist and engineers— 30th. You can’t see this, and I apologize, but when you look perhaps online, what you’ll see is that Missouri now ranks 35th overall on the new economy index, and we have slipped seven places since 2002. So there is work for Missouri to do. That work has to focus on higher education, and obviously we want Missouri State to be a featured institution with respect to that progress and the ability for us to move our students forward and be well prepared for life and work in the 21st century, and also to make sure Missouri as a state is competitive with its neighbors, with other states across the country, and of course increasingly on a global basis. I am right at my time, and I appreciate your attention to this. I am happy as always to take questions from you and look forward to interaction with you, and thank you very much for being here and being interested in Missouri State University. (applause)